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Emerging Markets

On Monday, investors cheered former president Luiz Inácio Lula da Silva’s (Lula) victory over incumbent Jair Bolsonaro in the second round of Brazil’s presidential election held over the weekend. However, Brazil’s financial markets are at risk of…

Stay short Greater China assets. Stay long Japanese yen. Hold back on Brazil for now but look forward to opportunities in future.

Chinese industrial profit growth continues to shrink, down 2.3% ytd y/y in the first three quarters of 2022. The weakness is particularly pronounced among downstream sectors. Profits of manufacturers contracted by 13.2% ytd y/y while mining and quarrying…
According to our Emerging Markets strategists, Hungarian 10-year domestic bonds offer a good medium-term investment opportunity. The team believes that Hungarian growth has already peaked and is headed towards a recession. Given that exports make up a…

We recommend that investors use the following framework to think about whether potential disinflation would be bullish or bearish for share prices: disinflation will prove to be bullish for global share prices if it is due to an improvement in supply-side dynamics, but bearish if it is demand driven. We believe it is the latter.

According to BCA Research’s China Investment Strategy service, messages from the Party Congress suggest that China’s policymakers will continue to balance the trade-offs between short-term economic growth, socio-political stability and the nation's long-term…

The 20<sup>th</sup> Communist Party Congress concluded on Sunday with President Xi Jinping cementing his third term in office. We are maintaining our cautious stance on Chinese stocks and the exchange rate. The lack of a significant shift away from current macro and regulatory policies means that China’s economic recovery and stock performance remain at risk.

China’s Q3 GDP growth data surprised to the upside. It accelerated to 3.9% y/y from 0.4% y/y in Q2, beating expectations of 3.3% y/y, and returned to growth on a quarter-on-quarter basis following a contraction in Q2. Meanwhile, economic data was mixed in…
Taiwanese export orders are signaling a deterioration in global manufacturing activity. They relapsed in September, declining by 3.1% y/y following a brief 2% rebound in the prior month. In particular, orders to China dropped by 28% y/y, marking the sixth…
According to BCA Research’s Emerging Markets Strategy service, investors should stay underweight Indonesian stocks in EM and Emerging Asian equity portfolios. Indonesian stocks have sharply outperformed the Emerging Markets benchmark this year. And yet in…